Budget Execution

16. What happens to the unexpended balances of appropriation for PS and MOOE at the end ofthe fiscal year?Unexpended balances of appropriations for administrative purposes like PS and MOOE which remainunobligated at the end of the fiscal year shall revert to the general fund.17. Is it possible to use savings from one expense item to another without enacting asupplemental budget?Yes. The Punong Barangay may by ordinance, be authorized by the Sangguniang Barangay to augmentany item in the approved annual budget from savings in other items within the same expense class, i.e.from a personal services (PS) item to another PS item, or from a MOOE item to another MOOE item.Hence, use of savings through augmentation of funds is allowed without enacting a supplementalbudget.18. Under a reenacted budget, can the barangay continue to pay the honoraria of BarangayHealth Workers?Yes. Pursuant to Sec. 323 of RA No. 7160, the annual appropriations for honoraria of existing positions inthe barangay, statutory and contractual obligations, and essential operating expenses authorized in thepreceeding year’s annual and supplemental budgets are deemed reenacted.19. How are the IRA shares of barangays released?Section 286 of the Local Government Code of 1991 provides that the IRA share of local governmentunits (LGUs) shall be released within five (5) days after the end of each quarter without need of furtheraction or request. However, in order to facilitate the early release of the IRA to the barangays, the DBMhas adopted a direct credit system of cash release to the barangays.20. How are the IRA shares released under the Direct Credit System?Under the Direct Credit System, the DBM-Regional Operations and Coordination Service (DBM-ROCS)prepares the Notice of Cash Allocations and releases the funding checks for the month within five (5)days of the ensuing month to the head offices of the following government depository banks: Land Bankof the Philippines (LBP), Development Bank of the Philippines (DBP), Philippine National Bank (PNB), andPhilippine Veterans Bank (PVB). The banks in turn credit the amounts to the respective current accountsof barangays within 24 hours upon receipt of the funding check. Unlike in the previous fund releasesystem, the IRA shares no longer pass through the servicing banks of DBM ROs and the regionalbranches of the banks. This release mechanism ensures the early receipt by the barangay of their IRAshares.Barangay Budget Execution Page | 4